Buy now or wait? Need some advice

[RobSEMI]

Hi all,

Great forum.

I am looking at an 08 Equinox LS base model. I would be turning in my 06 silverado lease and have to roll 3000 (lease payoff verified by dealer) in the new purchase of the Equinox. I do not qualify for the pull ahead at the moment by 7 days and GMAC won't do it fo rthe dealer.

Based on current incentives (1500 +1000) and GMS pricing its about 4500 off at the moment so I would be 1500 ahead in the purchase.

Or I could wait for the 09's to roll in and HOPE, and I stress HOPE, for a good deal then also and not have to roll in the extra, basically working the payment out to the same amount or maybe a few dollars less. But I wouldn't get the GMS pricing, only Supplier if I waited. The dealer agreed to GMS pricing for me until 08-19-08.

I am not over miles and I dont NEED to turn it in right now, so any thoughts on 09 incentives and such or should I pull the trigger now? If I wait, it would be close to July of 09 before I turned in the lease.

I cant decide. Sorry for the long post.

Thanks

[ronald mcretard]

If you're in the market for an SUV, it kind of depends on gas prices. If they continue to stay high, then you can probably get a great deal on an '09 in 6 months or so. But if gas prices fall to less than $3 as some are predicting, more people will buy SUVs instead of cars and there will be enough demand for dealers to sell near MSRP. In that case you would probably want to act now.

[RobSEMI]

What are your thoughts on the future of the pull ahead to get leasees out of their leases and into a purchase? Is the current pull ahead the last for a while??

[MrCritical]

As an ex-salesperson, my best advice for 90% of the population is to never lease a vehicle.

My second best advice is to never try to get out of a lease early.

[MalibuMaxxSS]

Originally Posted by MrCritical

As an ex-salesperson, my best advice for 90% of the population is to never lease a vehicle.

My second best advice is to never try to get out of a lease early.

This wouldexplain why your an ex-salesman, on a lease GM takes ALLLLLLL the loss, until now, VERY little liability to the customer on a lease, best option for almost everyone.

As for turning it in early, yes no difference, you owe you pay, gas milage will be better on the equinox, as for pull ahead, I dont see any pull ahead on the 09 inventory, interest rates are still 0 on our 09 so far, Equinox included, rebates are a bit different, so for 09 figure you will pay prolly 1500ish more.

Deals re going to be on 08 for sure, but our 08 inventory is low, so 09 are rolling out now. AT STICKER, unless we dont have equivalent 08, then we deal a bit....Equinox are VERY HOT sellers up here in northers BC, especially the sport models.

Onother thing is your making payments on your truck as well, so if you did it now you would not have to make those payments, so if you wait either way your paying. catch 22 really. who know what next July will bring, especially in Canada with the dollar, I have $11,000 rebtes on Diesels right now.

[91 s-10baja]

ride it out.

[MrCritical]

There's no longer any tax advantage to a lease.

You make payments and have nothing to show for it.

You must carry more insurance on a lease.

You never build equity. You're liable for any excess wear and tear.

It's twice as easy to get out from under a purchase than a lease.

If the vehicle is in a serious accident, your insurance company is twice as likely not to total a lease, simply because of what's owed on it.


That would explain why you are stuck in a lease. You don't know what you are doing, which auto salespeople love.

Profit for dealer is usually 50% higher on a lease.

FYI, I was a top ten salesperson in Chevrolet Legion of Leaders, and Buick Salesmaster for 9 years running.

[tom3]

With the huge depreciation on GM vehicles these days I don't think a lease is that bad of a deal for someone wanting new vehicles every couple years. At least up to the present, things are changing fast on leasing. On this deal I would keep the truck until the lease runs out, drop the keys on the desk and look to make a straight out deal on the next vehicle. And buy something you can live with for an extended term and keep it a while. Just my opinion, obviously.

[MalibuMaxxSS]

Originally Posted by MrCritical

There's no longer any tax advantage to a lease.

You make payments and have nothing to show for it.

You must carry more insurance on a lease.

You never build equity. You're liable for any excess wear and tear.

It's twice as easy to get out from under a purchase than a lease.

If the vehicle is in a serious accident, your insurance company is twice as likely not to total a lease, simply because of what's owed on it.


That would explain why you are stuck in a lease. You don't know what you are doing, which auto salespeople love.

Profit for dealer is usually 50% higher on a lease.

FYI, I was a top ten salesperson in Chevrolet Legion of Leaders, and Buick Salesmaster for 9 years running.

after a 5 year Finance what do you have, a vehicle with no warranty for the last year or 2, so you make payments plus maintence, or BUY extended, either way you pay more. No need for it on a 3 year lease.

# 2 Not really on a Finance you MUST carry full coverage as well, The only extra thing GM makes me carry is 5 million liability, and if you dont now a days, you should. makes a diff of 3 dollars on mine.

# 3 been doing this for 6 years and have only ONCE seen equity in a truck after 3 years, and the guy put 15G down, that was the only reason. After 3 years on a lease you have 3 options, buy it out, sell it ot a friend, fire it back to GM and let them take the loss at acution.

on a Finance after 3 years, well your still upside down, have to burry the difference (LOSS) if you trade or make payments for another 2 years, well if I had leased I could be driving a NEW truck for the 2 years Im making payments on my OLD one, and they would be the same. ONLY difference is I have 2 NEW trucks in 6 years BOTH fully covered by GM, and an option to take another new one..On my finance I have a 5 year old truck with lots of miles, with no warranty for the last 2 so what did maintence cost ya?...or the extended taht I did not have to purchase on my lease....anyhow.

#4 GM offered Smart wear here and EVERYONE took it it was 600 bucks and covered you for up to 3500 bucks damage. besides if I own it and beat on it you will be dinged on the trade later, If you finance it and trade it with damage you are penilized for it, so really no difference, EXCEPT, when I bring my lease back with 4 bald tires, a banged bumper and a dent in the door, its only gonna cost me 600 bucks, instead of the 3 grand on a trade for a body shop to fix it.

#5 not really, unless the finance guy put cash down, they are in it for about 4 years, without burring $$.

#6...Its leased I dont care I only got it for 3 years.....HOWEVER picture this. you finace a car and smack it up after 3 years, the insurance company writes it off, and gives you book value..say 5000, BUT you owe, lets say 8000, who pays the other 3000....YOU, seen it happen LOTS....GM carries GAP protection for this reason. GM is on the hook for the diff NOT YOU.

Im not stuck in one, I got a lease cause my dealership pays for my SS, not me, beside I dont like vehicles with no warranty and like a new one EVERY 3-4 years, on a finance I would be upside down EVERYtime I traded.....Im top here as well, and for you to say leasing is wrong...whatever.

no one said there was anything wrong with making money, maybe thats why you are not in sales anymore...Im quite successful.

Gm is going to loss some because of leasing and it dont work for every one, but even guys who are high milers leaseinbg still works, YES your payment is higher, but you dont eat it on the backend, a 3 year old truck with 200,000km is not worth nothing anyhow, try and TRADE that after 3 years, still owing 25 grand.

[MrCritical]

GM vehicles come with a 5 year warranty, so you're wrong there. And I can pay for a lot of repairs for the amount of a lease note in case something's not covered.

#2 You can not lease, carry ten or twenty grand in liability here, pay 50 bucks for an LLC, and save the money. I promise there's more than 3 bucks difference in 20 grand liability and 5 million.

#3. Anyone who doesn't get equity after three years either got fleeced when they bought it, were upside down on their trade, or paid no down payment. Add the payments and the buyout price and you could have paid 10 grand less to not lease. You're also responsible for excess miles, wear and tear, and reconditioning.

#4 You're comparing apples and oranges. If you don't know how to buy a vehicle correctly, which you obviously don't then yes, you'll always be upside down, just like a lease.

Smart Wear is just another way to get in your pocketbook. You fell for it hook, line, and sinker.

GM doesn't carry gap coverage. You paid for it.

You wouldn't be upside down if you bought the vehicle at a good price, didn't buy stupid add ons like gap, and weren't upside down on a trade after three years. IF and I say IF you were, it wouldn't be nearly as much as you're upside down on a lease.

You're probably paying double or triple the interest rate on a lease that you could have bought it for. The FTC has determined that a lease is not a debt, so they don't have to disclose an interest rate to you.

No there's nothing wrong with making money. But there's also nothing wrong with me keeping as much of it as possible.

Yes leasing works. But for who.

I am not in sales any more because I don't need to be. I have a several hundred thousand dollar home that is paid for, land that is paid for. Two Pontiac G6's and one Vibe in my driveway, both paid for.

How'd I do that? Leasing cars to suckers for 9 years.

By the way, The National Auto Dealers Association, Dave Ramsey, and Consumer Reports agree with me about leasing.

I don't see anyone here agreeing with you.

[RobSEMI]

Thanks all for the different angles of looking at it.

The way I see it, I will pay now or later so it does not really matter. Even if I buy used and add an extended warranty it would work out to the same as just getting something now minus all the incentives and such.

I leased because I wanted a truck for a few years and I got a great deal on it so I went for it knowing that gas prices might be an issue. I agree that you don't have anyting to show for it when you turn it in BUT, I drive 25000 miles a year so even if I buy, I would be in the negative trying to sell/trade-in a 3 yeard old vehicle with 75000+ miles on it. It will never be worth what I will owe in MY situation even if I got 0% financing.

Besides, I plan to drive the Equinox as long as it runs so I will be keeping it.

Thanks again,

Rob

[MalibuMaxxSS]

Originally Posted by MrCritical

GM vehicles come with a 5 year warranty, so you're wrong there. And I can pay for a lot of repairs for the amount of a lease note in case something's not covered.

#2 You can not lease, carry ten or twenty grand in liability here, pay 50 bucks for an LLC, and save the money. I promise there's more than 3 bucks difference in 20 grand liability and 5 million.

#3. Anyone who doesn't get equity after three years either got fleeced when they bought it, were upside down on their trade, or paid no down payment. Add the payments and the buyout price and you could have paid 10 grand less to not lease. You're also responsible for excess miles, wear and tear, and reconditioning.

#4 You're comparing apples and oranges. If you don't know how to buy a vehicle correctly, which you obviously don't then yes, you'll always be upside down, just like a lease.

Smart Wear is just another way to get in your pocketbook. You fell for it hook, line, and sinker.

GM doesn't carry gap coverage. You paid for it.

You wouldn't be upside down if you bought the vehicle at a good price, didn't buy stupid add ons like gap, and weren't upside down on a trade after three years. IF and I say IF you were, it wouldn't be nearly as much as you're upside down on a lease.

You're probably paying double or triple the interest rate on a lease that you could have bought it for. The FTC has determined that a lease is not a debt, so they don't have to disclose an interest rate to you.

No there's nothing wrong with making money. But there's also nothing wrong with me keeping as much of it as possible.

Yes leasing works. But for who.

I am not in sales any more because I don't need to be. I have a several hundred thousand dollar home that is paid for, land that is paid for. Two Pontiac G6's and one Vibe in my driveway, both paid for.

How'd I do that? Leasing cars to suckers for 9 years.

By the way, The National Auto Dealers Association, Dave Ramsey, and Consumer Reports agree with me about leasing.

I don't see anyone here agreeing with you.

holy crap moron relax, GM vehicles JUST came with a 5 year warranty in 07 and ITS only PT, which aint much.

dont know how your ins works clearly different then here. Its goverment run here.

I drive like 10,000km a year, I baby my car, I did not get Smartwear, I dont need it, some people do. And your responsible for that either way, bring your car in baged and you get dinged on the trade allowance....and you said it yourself, to have equity in 3 years, you said the customer had to have put money down, I dont on a lease. I had no vehicle when I got it so I was not upside down, I dont plan on buying it out, its going back. So no need to worry about buyout. NOT MY PROBLEM, GMs.

LOL, working at a GM dealership Im pretty srue I got my car for a good price...LOL

oh your right on the Gap, they did when I got mine but have since dropped it. my bad.

I did not get smartwear, I dont need it, some people could use it, like the kid that brought his lease back with the side of the box caved in and a $3245 bill..sent it back and no questions asked, for 600 bucks, pretty good deal in my books.

LOL, I pay 1%, thru the dealer and GMAC....read the papers, holy **** man, not sure where you screwed people, but its full disclosure here.

Everyone has aseveral hundred thousand dollar home, I have yet to see one for sale under a hundred grand, Im glad you have your G6...they are cute, as is your Matri....Vibe...not sure how you did it, but most anyone could to be frank, G6s are not expensive, nor are vibes, but anyhow, I not concerned with how much money you may or may not have, I am doing quite well and will take my SS over your G6, and when the lease is up this spring, a new V8 Camaro will be parked in its place. Kids are grown now so no need for a 4 door...See if I paid cahs the money I would have lost trading it after 3 years, WOW.....

It is apparent with GM getting out of leasing who was taking the loss before.

funny ^^^ (thread starter) agrees with me, your last comment makes it clear on your attitude, I dont consider my clientele 'suckers'

wow touched a nerve there.....call me an idiot if it makes you feel better, but I did read the contract, lol, and I do work here so Im pretty sure I know my rate and things. I can also do a little math and I know if I had bought and for what Im doing I would have lost around 15 grand come trade time this spring.

OH and you said there was NO tax advantage to leasing, well not true you ONLY pay tax on your payment NOT the price of the car vehicle...I think that is a bit of a savings, but what do I know.

[MrCritical]

"touched a nerve there"?

"That would explain why you're an ex salesman."

"Maybe that's why you're not in sales anymore, I'm quite successful."

You started the personal attacks.

Yes, many people do have several hundred thousand dollar homes, and nice cars. But they lease cars and live paycheck to paycheck with maxed out credit cards. I OWN everything, 100%.

And yes, when you lease a car and any competent finacial advisor (see previous post) tells you it's not smart, then yes you are a sucker. P.T Barnum style.

[ptviperz]

I would never roll $3K into another loan, that's a real bad way to get started.

Cars are the dumbest thing in the world to spend money on, it's a depreciating asset. Buy the car, pay it off in no more than 3 years and then drive it for free while you save the monthly payment towards repairs or another vehicle. Leasing is a great way to never have a thing in YOUR bank account, it's a sucker shell game.

Why would you guys trade cars every 3 years? Buy something you like one time and drive it for 10 years.

[Rex Raider]

Originally Posted by MrCritical

There's no longer any tax advantage to a lease. .

In Canada, and if you're a business, there still is. But most people don't lease for the tax benefits. A good accountant can work with either.

You make payments and have nothing to show for it.

On a loan, you will have payments, and then own a depreciating asset in the end. In the meantime, your payments are higher. Eventually when the car is paid off, you'll have something that's worth nowhere near what you paid for it.

You must carry more insurance on a lease.

Again, here in Canada, insurance is mandatory, and there's no price difference to my insurer between leasing and financing. Same costs. Same benefits.

You never build equity.

We have plenty of Toyotas come back at lease end with equity. If your mileage is low, the car is in good shape, and if you took care of it, we can often find $500 to $2000 in equity. Depends on market condition. A purchased car rarely has equity either.

You're liable for any excess wear and tear.

And you aren't liable for wear & tear if you own your own car? If you smash it, or put on "too many" kilometres per year, you will kill your resale value. There's also pride of ownership. I like my car to be presentable, scratch free, etc... I'd still have to fix anything that goes wrong.

It's twice as easy to get out from under a purchase than a lease.

In either situation, you're going to take a hit. Explain how one is easier? You can be just as upside-down (or more) on a finance than on a lease.

If the vehicle is in a serious accident, your insurance company is twice as likely not to total a lease, simply because of what's owed on it.

And at the end of the lease, you hand back the keys as long as the car is fixed properly (which is what you have insurance for). Ever try to resell a car that's been accidented? It lowers the value. There goes any "equity".

Profit for dealer is usually 50% higher on a lease.

according to who? Not Toyota where I work now, and not GM where I used to work. Same markup. Cash, finance or Lease. We don't have fluctuating MSRPS.